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INSTRUCTION No

INSTRUCTION No. 753-TTg ON THE 12TH OF DECEMBER 1994 ON THE CONTINUED CONVERSION OF GUEST-HOUSES AND REST-HOUSES INTO BUSINESS UNITS UNDER DECISION No. 317-TTg ON THE 29TH OF JUNE 1993 OF THE PRIME MINISTER

After more than one year's implementing Decision No. 317-TTg on the 29th of June 1993 of the Prime Minister on the conversion of guest-houses and rest-houses into business units, almost all the ministries, branches, localities and mass organizations have made great efforts to convert their guest-houses and rest-houses into business units. Following the conversion, many guest-houses and rest-houses have been able to develop their capabilities and made notable contributions to overcoming the shortage of rooms and beds for domestic as well as foreign guests in such major centers as Hanoi, Haiphong, Ho Chi Minh City and Ba Ria-Vung Tau which had remained unsolved over a long period.

However, some ministries, branches, units and mass organizations have not really and actively created conditions for the guest-houses and rest-houses to change over to business, or after converting these houses into business units, thy have reserved too large a proportion of the rooms and beds for internal use. Some units have even changed guest-houses and rest-houses into sanatoria. This, asides from varying with the spirit of Decision No.317-TTg, has created new complexities and intricacies in accounting and managerial work of these units themselves.

With a view to accelerating the conversion of the guest-houses and rest-houses into business units in conformity with Decision No.317-TTg, the Prime Minister hereby instructs:

1. The Ministers, Heads of ministerial-level agencies, and agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to take direct guidance of the review of the conversion of guest-houses and rest-houses into business units, put forth concrete measures to expeditiously complete the conversion of the guest-houses and rest-houses under the management of their ministries, branches and localities into business units, in conformity with the spirit of Decision No.137-TTg of the Prime Minister.

2. With regard to those guest-houses or rest-houses already converted into business units, they shall have to fill all the procedures on setting up of businesses according to current regulations, and work out plans for transformation, upgrading and expansion of the existing buildings, make in-depth investment, train and foster their personnel in their professional skills and foreign languages in order to meet the ever higher requirements and needs of the tourist and service industries.

3. Depending on the conditions and characteristics of each region, each locality and each sector, the Ministry of Finance shall together with the General Tourist Department and in coordination with the various specialized services, study and submit to the Prime Minister an appropriate system of policies aimed at narrowing and eventually eliminating the irrational discrepancies in business caused by the difference in location, floor space and sector among the different guest-houses and rest-houses, so that all of them could develop their existing potentials or form joint ventures or cooperation ventures in various forms to efficaciously exploit these houses.

4. The Ministry of Labor, War Invalids and Social Affairs shall take the main responsibility and, together with the Ministry of Public Health and the Ministry of Finance, discuss with the various ministries and branches to determine clearly which ministries, branches or units must necessarily set aside one or several sanatoria to look after those engaged in heavy or noxious jobs, as well as the number of sanatoria and the size of each sanatorium of each ministry and branch and in each territory.

On the basis of this determination, the ministries and branches shall have to discuss and come to agreement with the Ministry of Construction and the General Tourist Department and the localities on the location of the sanatorium (sanatoria), their zoning into separate sectors completely detached from the tourist business sector, as well as on the management regulation in order to ensure good service to the convalescents while not affecting the business of other units.

5. The General Tourist Department shall have to promote and guide the different branches, mass organizations and localities to expeditiously convert the guest-houses and rest-houses into business units. Where conditions for hotel business are available, conversion procedures should be done immediately. Where such conditions exist but not adequately, a plan must be worked out to transform and upgrade the house. Where conditions do not exist in terms of location or floor space for the conversion into a hotel, another appropriate form of exploitation must be found out in order to change to business without delay so as to avoid waste and degradation of the property. On the other hand, the General Tourist Department shall coordinate with the other agencies to work out plans to help these units provide professional training and fostering in hotel and tourist service for their personnel who are either working there or will be assigned there, so as to help them quickly integrate with the activities of the tourist business.

6. The General Director of the General Tourist Department shall have to monitor and review the situation in the implementation of Decision No.317-TTg of the Prime Minister, and coordinate with the concerned branches to find out and propose to the Prime Minister appropriate measures to help the guest-houses and rest-houses change to business activities in an expeditious and convenient manner.

Upon receipt of this Instruction, the Ministers, the Heads of ministerial-level agencies, the Heads of agencies attached to the Government, and the presidents of the People's Committees in the provinces and cities directly under the Central Government shall have to work out plans to organize and guide the units under their jurisdiction to seriously implement this Instruction, and to make periodical reports on the results to the Prime Minister and also to the General Tourist Department for the compilation of a general report.

For the Prim Minister

Deputy Prime Minister

PHAN VAN KHAI